Fraud Briefing

RBI invoked Section 35A of the Banking Regulation Act to impose restrictions on Ashok Sahakari Bank Ltd, Ahmednagar, effective August 28, 2026, prohibiting all depositor withdrawals, new loans, fresh deposits and investments without prior RBI written approval, citing severe supervisory concerns and a deteriorating liquidity position.

Fraudsters impersonating law enforcement placed the victim on a prolonged video call and told her she was under criminal investigation. They coerced her into transferring Rs 2.60 crore into accounts described as Secret Supervision Accounts. The network fragmented the funds across 400+ beneficiary accounts held by shell companies whose directors were persons of no means. A chartered accountant incorporated 21 such companies using supplied identity documents and managed 43 dummy directors as a single group. The network converted the tainted funds to cash and then into foreign currency via RBI-licensed Full Fledged Money Changer companies, masking proceeds of crime as legitimate transactions.

Depositors of Ashok Sahakari Bank, Ahmednagar are unable to withdraw funds with immediate effect. RBI's directions are valid for six months from August 28, 2026. Eligible depositors may claim deposit insurance up to Rs 5,00,000 from DICGC. The bank's licence has not been cancelled and operations continue under restrictions.